The country’s economy likely grew by 6.7 percent in the last quarter of 2017, according to Moody’s Analytics.

In its latest Asia-Pacific Economic Preview report, the economic research and analysis arm of Moody’s said the Philippines’ gross domestic product in the last three months of the year may have expanded by 6.7 percent, slower than the revised seven percent GDP growth the previous quarter.

This is, however, higher than the 6.6 percent growth recorded in the comparative quarter of 2016.

“The Philippine economy likely grew 6.7 percent year-on-year in the December quarter, after a 6.5 percent lift in the prior three quarters. Domestic demand likely remained the major driver of growth, with exports also providing lift thanks to strong demand for electronics and components,” Moody’s Analytics said.

In particular, Moody’s said consumer spending likely remained firm as households benefited from steady inflows of overseas Filipino remittances and a healthy labor market.

Investments also stayed solid on the back of the government’s Build Build Build program, which got a further boost late last year with the passage of the Tax Reform for Acceleration and Inclusion Act.

Business ( Article MRec ), pagematch: 1, sectionmatch: 1
“Growth prospects got a further boost late last year with the passage of the first tax reform bill, which will help fund President Rodrigo Duterte’s ambitious infrastructure development program,” the research firm said.

Currently, the estimated incremental revenues to be raised from the law is about P89.9 billion.

According to the Department of Finance (DOF), part of the additional revenues to be generated from the tax reform law will be used to fund the government’s Build Build Build program.

Under this program, the Duterte administration is planning to spend up to P9 trillion on infrastructure until 2022.

“That will go some way to improving the country’s poor infrastructure, which has long prevented the Philippines from reaching its potential,” Moody’s said.

The Philippine economy expanded by seven percent in the third quarter of 2017, based on the revised figures of the Philippine Statistics Authority. This puts the government on track to meet its 6.5 percent to 7.5 percent full-year growth target.

The government is scheduled to announce the country’s last quarter and full-year GDP growth on Jan. 23.

THE 30-MEMBER Philippine Stock Exchange index (PSEi) will remain unchanged, according to the bourse’s latest review covering full year 2017.

The Philippine Stock Exchange (PSE) announced in a statement on Monday that while there will be no changes to the main index’ composition, it has increased the minimum free float level requirement to 15% from 12% previously.

“This adjustment was made in anticipation of the plan of the Securities and Exchange Commission (SEC) to increase the minimum public ownership (MPO) for publicly-listed companies,” PSE President and Chief Executive Officer Ramon S. Monzon was quoted as saying in a statement.

The SEC had released a memorandum circular last November 2017 requiring companies seeking to conduct an initial public offering to have an MPO of at least 20%.

The corporate regulator has yet to release guidelines on how publicly listed companies should comply with the new rules, but noted in a draft circular that publicly listed firm will first be directed to reach a public float of at least 15% this year, before further raising it to 20% by 2020.

The PSE takes into account a company’s public float, liquidity, and capitalization in order to determine its suitability to be part of the index, which is seen as a gauge for investor sentiment.

“To ensure the sustainability and viability of companies that form the index, we shall also take into account the financial condition of companies that are potentially first time entrants to the main index and companies that form part of the sector indices,” Mr. Monzon added.

Philippine Realty and Holdings Corp. will be added to the property sector, while Araneta Properties, Inc., Cyber Bay Corp., and MRC Allied, Inc. will be dropped.

To be included in the index for services are MacroAsia Corp., PhilWeb Corp. and Waterfront Philippines, Inc. On the other hand, 2GO Group, Inc., Apollo Global Capital, Inc., Island Information and Technology, Inc., Premiere Horizon Alliance Corp., Travellers International Hotel Group, Inc., and SBS Philippines Corp. will no longer be part of the services index.